Would most lenders take this into consideration and calculate our DTI ration based on our earned income and passive income from other rentals (and expenses)?

If it’s what you want to do, go do it and enjoy your $1000/month…..in 5 years.This could be the best example of rationalization I've seen yet. 

I rationalize the situation as this; low supply and high demand > higher saturation of wholesalers and investors vying for deals > less deals or even hits on a good lead.

DSCR lenders use STR numbers as well to bring the rental ration to 1:1.

The over value (above appraised price) offers are heavily from OO purchasers who can easily rationalize paying over value for a home that they like and meets their needs.  

Some of the ones we are looking at now are listed at 240k with a possible rent of $1600/mo - nowhere near a 1% rent to price ration.  

@Greg Scott - Oh, it is sooooo nice to hear your words as they are what I was trying to rationalize.

The only real benefit I can see from this is if you just started your real estate business and the lender is not counting the rental income towards your DTI ration because it hasn't been 2 years, they still may count the wages as income.However, a lot of work with some additional costs involved.

A big thank you to everyone that posted rational responses to my query. 

Your cost should be restricted to the DP...ONLY.Tax deductions, as a reason to accept a bad deal, is just a rationalization...and really bad math.